Roadrunner Transportation Systems has officially announced the sale of its subsidiary Unitrans Inc., Business Wire reports. Unitrans, a Los Angeles-based cold chain logistics business, is being sold to New York-based full-service priority transportation and logistics company, Quick International Courier for $95 million.
Unitrans was first acquired by Roadrunner in 2014.
“We have agreed to divest Unitrans, Inc., which is an excellent business but did not integrate within our portfolio. We expect to use the proceeds from this transaction to reduce outstanding debt, redeem certain of our outstanding preferred stock, lower our leverage, and reduce interest expense. We wish the Unitrans management team and team members well and know that they will have exciting new opportunities as they become part of Quick International Courier,” said Curt Stoelting, Roadrunner’s CEO.
DC Velocity reported that “Roadrunner is expected to use most of the proceeds to redeem a portion of its preferred stock.” The deal should be complete sometime this quarter.
One of Unitrans’ main focuses is the life sciences’ market. It ships health care products, medical devices, biotech devices and other items through its Pharma Competence Center.
Quick International specializes in delivering time-sensitive items like “blood and organs for transplant.” Quick International has become the go-to logistics company for perishable items that most medical centers need for their day-to-day operations.
In Unitrans, Quick International has found a partner that meshes with its current operations.
Transportation analyst Benjamin J. Hartford of the Robert W. Baird & Company investment firm praised the sale, telling DC Velocity that Roadrunner had too many companies under one umbrella, resulting in slower execution.